Before we dive into some of president Fernandez's decisions, it is important to remember that Argentina has struggled to return to the credit markets after its spectacular 2001 default, and it is still struggling to meet its debt obligations.

At the time Fernandez argued that she was acting to shelter pensions from the global financial crisis but critics said it was to help the government cover its shortfall as it was coming up on repaying its debt.

Then, in 2010, Fernandez forced then central bank chief Martin Redrado out of his position because he refused to set aside central bank reserves that the government hoped to use to repay it's debt.From Bloomberg:

"The decree yesterday ordered legal proceedings to be brought against Redrado, saying his failure to carry out Fernandez’s Dec. 15 instructions to set aside the reserves created “a kind of anarchy.”

The government is seeking to tap the reserves as it faces borrowing requirement of about $11.4 billion this year, according to Credit Suisse Group AG.

Fernandez said in a speech today that the government is helping guarantee the payment of debt and “defending” the reserves. The debt plan “was not just a mere order from the executive branch, but the use of an exceptional tool” that the central bank is required to carry out, yesterday’s decree said."

But many argue that Argentine policies are behind its energy deficit which is expected to rise to $7 billion this year. Its decision to keep domestic oil, natural gas, and electricity prices lower than international prices and sometimes below production costs has deterred foreign companies from investing there and seen consumption increase.

UBS economist Javier Kulesz sums this up saying Fernandez's administration, which has been in power for nine years, has failed to recognize the basic economic principle that "this energy consumption- promoting / production-discouraging price policy is largely behind Argentina’s growing energy problems."

Energy imported at international prices but sold cheap has driven up its energy subsidy bill in recent years. If growth and inflation are being fueled by an aggressive expansionary policy stance, and energy prices don't change, its import and subsidy bills will surge posing a massive problem for a country like with limited access to international markets.